Arctech Solar (688408) Q4 2025 earnings summary

Executive summary

• Revenue for 2025 was RMB 6.88 billion, down 23.72% year-over-year due to delayed project deliveries and industry adjustments.

• Net profit attributable to shareholders was -RMB 10.1 million, a 101.60% decrease year-over-year, with adjusted net profit at -RMB 43.6 million.

• Gross margin for tracking systems improved to 20.32%, but overall gross margin declined to 17.03% due to higher share of lower-margin fixed racks.

• Overseas business accounted for over 75% of revenue, but was impacted by currency fluctuations and increased localization costs.

Financial highlights

• Operating income: RMB 6.88 billion, down 23.72% year-over-year.

• Net profit attributable to shareholders: -RMB 10.1 million, down 101.60% year-over-year.

• Adjusted net profit (excluding non-recurring items): -RMB 43.6 million.

• Operating cash flow: -RMB 1.13 billion, mainly due to increased inventory and prepayments.

• Total assets: RMB 10.29 billion, up 3.67% from previous year.

• R&D investment: RMB 165 million, 2.4% of revenue.

Outlook and guidance

• Focus on global expansion, especially in Middle East, India, and APAC, with new regional headquarters and manufacturing bases.

• Strategic emphasis on “Tracking+” and “Green Power+” to drive new business growth and reduce cyclicality.

• Continued investment in R&D, digitalization, and green operations to enhance competitiveness.